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Orendain vs. BFHomes Inc. G.R. No. 146313 Oct. 31 2006 - Digest

The Supreme Court ruled that the Regional Trial Court (RTC), not the Securities and Exchange Commission (SEC), has jurisdiction over the reconveyance suit filed by BF Homes against the Local Superior of the Franciscan Sisters of the Immaculate Philippines (LSFSIPI) and petitioner Orendain. [1] The case is an ordinary reconveyance suit, which falls under the jurisdiction of the RTC, not the SEC, regardless of BF Homes' status under rehabilitation. [2] Moreover, jurisdiction over intra-corporate cases was transferred from the SEC to the RTC under the Securities Regulation Code of 2000, so even if the case was intra-corporate in nature, it would still fall under the RTC's

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196 views1 page

Orendain vs. BFHomes Inc. G.R. No. 146313 Oct. 31 2006 - Digest

The Supreme Court ruled that the Regional Trial Court (RTC), not the Securities and Exchange Commission (SEC), has jurisdiction over the reconveyance suit filed by BF Homes against the Local Superior of the Franciscan Sisters of the Immaculate Philippines (LSFSIPI) and petitioner Orendain. [1] The case is an ordinary reconveyance suit, which falls under the jurisdiction of the RTC, not the SEC, regardless of BF Homes' status under rehabilitation. [2] Moreover, jurisdiction over intra-corporate cases was transferred from the SEC to the RTC under the Securities Regulation Code of 2000, so even if the case was intra-corporate in nature, it would still fall under the RTC's

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Russell
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6. Orendain vs. BFHomes, Inc., G.R. No. 146313, Oct. 31, However, Section 5 of PD No.

PD No. 902-A does not apply in the


2006 instant case, because:

CASE FILED: Petition for Review on Certiorari 1. The LSFSIPI is neither an officer nor a stockholder
FACTS: of BF Homes, and this case does not involve intra-
corporate proceedings.
Despite its solvent status, BF Homes, Inc, respondent filed
a Petition for Rehabilitation and for Declaration in a State 2. In addition, the seller, petitioner Orendain, is
of Suspension of Payments before the Securities and being sued in his individual capacity for the
Exchange Commission (SEC) unauthorized sale of the property in controversy.

In addition, jurisdiction over the case for reconveyance is


SEC ordered the appointment of a rehabilitation receiver,
clearly vested in the RTC as provided in paragraph (2),
FBO Management Networks, Inc., with petitioner Orendain
Section 19, B.P. Blg. 129,
as Chairman to prevent paralyzation of BF Homes'
business operations.7
Nowhere in said decree [PD 902-A] do we find even so
8
Deed of Absolute Sale was executed by and between BF much as an intimidation [sic] that absolute jurisdiction and
Homes' represented by petitioner Orendain as absolute control is vested in the Securities and Exchange
and registered owner, and the Local Superior of the Commission in all matters affecting corporations.
Franciscan Sisters of the Immaculate Phils., Inc. (LSFSIPI)
over a parcel of land Moreover, the instant petition has been rendered
moot and academic by the passage of RA 8799 or The
Later on, SEC, appointed a new Committee of Receivers Securities Regulation Code which took effect on August
8, 2000.37
Consequently, receiver Orendain was relieved of his duties
and responsibilities. Section 5.2 of RA 8799 transferred exclusive and original
jurisdiction of the SEC over actions involving intra-
BF Homes filed a Complaint before the Las Piñas RTC corporate controversies to the courts of general
against LSFSIPI and petitioner Orendain, for jurisdiction or the appropriate RTC.
reconveyance of the property alleging, inter alia, that
the LSFSIPI transacted with Orendain in his individual In the transition, all intra-corporate cases pending in the
capacity and therefore, neither FBO Management, Inc. nor SEC, which were not ripe for adjudication as of August 8,
2000, were turned over to the RTC.
Orendain had title to the property transferred.

Thus, "whether or not the issue is intra-corporate, it is now


Florencio B. Orendain filed a Motion to Dismiss stating that
the [RTC] and no longer the SEC that takes cognizance of
the RTC had no jurisdiction over the reconveyance suit;
[and resolves cases involving intra-corporate
controversies]."38
BF Homes filed its Opposition15 to petitioner's Motion
to Dismiss, alleging that the case was within the
exclusive jurisdiction of the RTC, not the SEC,
considering that the case was an ordinary
reconveyance suit

RTC denied Motion to Dismiss for lack of merit

ISSUE: which has jurisdiction over the action for


reconveyance the RTC or SEC.

RULING:

Jurisdiction over the subject matter is conferred by


law and cannot be subject of an agreement between
parties. (mao ning sa book ni judge na iyang gi quote)

The nature of an action, as well as which court or body has


jurisdiction over it, is determined based on the
allegations contained in the complaint of the plaintiff,
irrespective of whether or not plaintiff is entitled to
recover upon all or some of the claims asserted therein.

It cannot depend on the defenses set forth in the answer, in


a motion to dismiss, or in a motion for reconsideration by
the defendant

At the time the case was filed, Section 5 of PD No. 902-A


was still the law in force whereby the SEC still had original
and exclusive jurisdiction to hear and decide intra-
corporate cases.

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